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Delhi authority red-flags Kalyan-Taloja Metro line

The Delhi Metro Rail Corporation (DMRC) said the corridor, which mostly has agricultural and barren land, is not inhabited by enough commuters and is therefore economically unviable.

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The Delhi Metro authority has shown a red flag to the proposed Kalyan-Dombivali-Taloja Metro line in suburban Mumbai, scuppering the connectivity plan conceived by the Mumbai Metropolitan Region Development Authority (MMRDA).

The Delhi Metro Rail Corporation (DMRC) said the corridor, which mostly has agricultural and barren land, is not inhabited by enough commuters and is therefore economically unviable.

MMRDA had approved the construction of the Metro line a week ago, despite a DMRC study stating mass rapid transport system should be planned in areas with high population density for it to be useful.

The Kalyan-Taloja Metro line-12, estimated to cost around Rs 5,000 crore, has been proposed as an extension of Thane-Bhiwandi-Kalyan Metro-5, and its feasibility study was done after demands by political leaders from the region.

The DMRC report has also projected low ridership for the line: 1.11 lakh passengers by 2021 and 1.92 lakh passengers by 2031.

"Financial Internal Return Rate (FIRR) is -7.40 [in the negative] per cent and also Economic Internal Return Rate (EIRR) is 6.36 per cent only. It shows that this extension is neither functionally nor economically viable. After five years a review may be made base on actual growth," the report reads.

According to DMRC, the EIRR of 6.36 per cent also does not qualify the minimum EIRR bracket set by the Union Ministry of Housing and Urban Affairs (MOHUA). In this context, the DMRC report states, "As per Metro Rail Policy 2017, issued by MOHUA, apart from financial viability, the economic and social viability of the project is required to be assessed. The EIRR for any Metro Rail project proposal should be 14 per cent and above for consideration of its approval." The report does not cite any remark on FIRR for consideration.

The report further states, "Accordingly, the Metro corridors are recommended for implementation provided the required EIRR works out to be 14 per cent or above."

An MMRDA official said, "The execution of Metro-12 is not going to be immediate. We believe that in the coming 10 years, need for it will arise with development of a growth centre in Kalyan by us and development in Navi Mumbai Airport area."

A DMRC official told DNA, "We have told MMRDA to be very careful before implementing Metro-12. Transportation can be planned and constructed anticipating future growth, but Metro comes later; after roads and railways which are primary."

"What we have in the government today is Metro Mania that thinks Metro being a solution for everything. If DMRC claims Metro between Kalyan and Taloja as not viable, it is wastage of money, if MMRDA approves it and goes ahead with the execution," said, AV Shenoy, member of Mumbai Vikas Samiti, forum of transport experts.

Why It Is Unviable

  • Low ridership of mere 1.11 lakh passengers daily by 2021
  • Metro line passing via agricultural and barren lands where there is not much habitation
  • Economic Internal Return Rate is 6.36 per cent; as per Metro Rail Policy, it should be at least 14 per cent
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